Hawk Tuah Memecoin Investors File Lawsuit Over Alleged Sale of Unregistered Securities

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A proposed lawsuit accuses those behind the $HAWK token of promoting and selling unregistered securities under federal law.

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The 29-page cryptocurrency lawsuit was filed following the December 2024 launch of the $HAWK token, a memecoin based on the personal brand of social media personality Haliey Welch—known across the internet as the “Hawk Tuah Girl.”

The suit alleges that Web3 launchpad platform and defendant overHere leveraged Welch’s celebrity status and social media following to enhance the crypto asset’s credibility and appeal, marketing it as a “groundbreaking cryptocurrency project.” The aggressive promotions and resultant “speculative frenzy” caused the $HAWK token’s market value to spike within hours after its launch before plummeting more than 90 percent shortly after, the case asserts.

Despite clear indications that the token was a security, no documents were ever filed with the U.S. Securities and Exchange Commission to register the crypto asset for sale, the complaint claims. As such, the filing contends that the defendants—which also include overHere founder Clinton So, the Tuah the Moon Foundation and token promoter Alex Larson Schultz—violated the federal Securities Exchange Act by advertising and selling unregistered securities across state lines and internationally.

The defendants’ promotional efforts emphasized community engagement and touted the $HAWK token as an “accessible entry point” into the cryptocurrency world for the average investor, the suit describes. According to the $HAWK token lawsuit, the project promised to “redefine the crypto space” and was promoted heavily online, including on X (formerly Twitter) and Welch’s “Talk Tuah” podcast.

“The pre-launch marketing for $HAWK framed the Token as more than a speculative asset, portraying it as a cultural movement with significant growth potential,” the case says. “Welch’s involvement and her reputation as a trusted public figure signaled to her followers and potential investors that the project was poised for success, fostering an expectation of profits based on her efforts.”

Per the complaint, the token was officially launched on December 4 with a market capitalization of $16.69 million. Within hours, its market value had skyrocketed to $491 million, the filing relays.

However, the suit claims, the $HAWK token’s value experienced “extreme volatility” and plunged below $100 million shortly after, a nosedive that left many investors with significant financial losses.

“Many of the investors were first-time cryptocurrency participants drawn to the project through Welch’s involvement,” the case states. “The rapid decline in the Token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated roadmap.”

As the complaint tells it, the defendants are liable to the plaintiffs—17 investors who reportedly suffered more than $151,000 in collective damages—for the alleged sale of unregistered securities under federal law.

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